U.S. Job Growth Misses Expectations as December Payrolls Rise by 50,000

U.S. job creation slowed at the end of 2025, with Nonfarm Payrolls increasing by 50,000 in December, according to data released Friday by the Bureau of Labor Statistics. The figure came in below market expectations of a 60,000 increase, signaling a softer-than-anticipated finish for the labor market.

The weaker reading reinforces signs that employment growth is losing momentum, even as the labor market remains broadly resilient.

December’s gain marks a moderation compared with previous months and suggests that higher interest rates and economic uncertainty continue to weigh on hiring decisions across sectors.

For financial markets, the data is likely to strengthen expectations that the Federal Reserve will remain cautious in its policy stance. Slower job growth could give policymakers more room to consider interest rate cuts later in the year, especially if inflation continues to ease.

Investors are expected to further scrutinize details within the report, including revisions to prior months, wage growth, and labor force participation, to assess whether the slowdown reflects temporary factors or a more sustained cooling in labor market conditions.